c. Changes to the Agreed Upon Discount Points

The lender and borrower are expected to honor any agreements they have entered into which impact the discount points paid on the loan.  VA does not object to changes in the agreed upon points, as long as no lender/borrower agreements are violated.  The following procedures apply in such cases.

Any increase in discount points requires

·   verification that the borrower has sufficient assets to cover the increase

·   documentation of the change, and

·   a new or corrected URLA with any corrections initialed and dated by the borrower

Reference:  For prior approval loans, see section 4 of chapter 5.